The European Union is set to unveil a strategy to halt new Russian gas deals and phase out existing contracts by 2027, marking a decisive step in ending Europe’s decades-long energy dependence on Moscow. The plan, expected Tuesday from the European Commission, includes measures to ban new Russian gas import agreements and restrict uncontracted “spot” purchases, sources told Reuters.
Key Elements of the Plan:
- Contract Termination Challenges: The EU is exploring legal avenues to allow companies to exit long-term Russian gas contracts without penalties, though legal experts warn invoking “force majeure” will be difficult.
- Russian Gas Reliance: While Russian pipeline gas and LNG now supply 19% of Europe’s gas (down from 40% pre-2022), many buyers remain locked into “take-or-pay” contracts with Gazprom.
- U.S. LNG Push: The EU has signaled willingness to increase U.S. LNG imports, aligning with Trump’s demands to reduce the EU-U.S. trade surplus.
- Sanctions Hurdles: A full embargo would require unanimous EU approval, but Hungary and Slovakia—still reliant on Russian pipeline gas—oppose such measures.
Political & Economic Risks:
- Energy Prices: The Commission insists any restrictions must hurt Russia more than Europe, avoiding spikes in consumer costs.
- Ukraine War Factor: A potential U.S.-brokered peace deal could reopen Russian energy flows, complicating the EU’s phase-out timeline.
EU Prepares Roadmap to Phase Out Russian Gas by 2027, Targets New Contracts Ban